Bangkok, 21 July 2020 – SEC is seeking public comments on the proposed amendments to the regulation on the fee for undertaking business of derivatives exchange whereby the fee would be determined by the actual trading volume and the current fixed rate is maintained as the minimum rate. The proposed amendments aim to align the fee with the cost of supervising derivatives exchange and in line with the changing capital market landscape.
Pursuant to the proposed amendments, the
fee for undertaking a derivatives exchange business would be determined at the
rate of 0.05 baht per contract per side for trades executed within the
derivatives exchange with a minimum fee of 2 million baht in place of the
existing fee which only prescribes the fixed rate of 2 million
baht. Also, agricultural commodity derivatives would be granted an exemption
from the calculation to support agricultural commodity business operators. The
new fee is expected to be imposed on derivatives exchange business operations from
the year 2021 onwards.
Currently, there is one licensed derivatives
exchange operator, namely Thailand Futures Exchange Public Company Limited (“TFEX”),
which has operated since 2006. SEC has begun collecting fee from TFEX since
2011 at a fixed rate of 2 million baht. Over the years, the trading volume on TFEX
have been increasing continuously. Thus, to align the fee with the cost of
supervising derivatives exchange and in line with the changing capital market
landscape, SEC views it is appropriate to revise the fee for undertaking
business of derivatives exchange.
The consultation paper is available at https://www.sec.or.th/TH/Pages/PB_Detail.aspx?SECID=637. Stakeholders and interested parties are welcome to give
comments and suggestions via the website or email: baramee@sec.or.th or
napaporng@sec.or.th. The public hearing ends on 5 August 2020.
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